Currently, individuals get tax breaks based on the income tax rate they paid – 20, 40, or 45 percent.
However, there are fears that this pension “perk” is in jeopardy, as numerous pundits speculate that it might be on the table every year.
This year, however, the Chancellor’s “temptation” to cut the pension tax could be too great, especially since the costs are soaring.
The estimated cost of the 2020-21 pension tax relief is £ 42.7 billion, split between £ 22.9 billion in income tax and £ 19.8 billion in social security contributions.
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